Overview

• European Commission preliminary findings confirm Temu breached the Digital Services Act by allowing illegal products to circulate on its marketplace.
• Regulators’ mystery shopping exercise showed a high likelihood of consumers encountering non-compliant items such as baby toys and small electronics.
• The Commission said Temu’s October 2024 risk assessment was flawed because it relied on generic industry data instead of platform-specific analyses.
• If the findings are upheld, Temu could incur fines of up to 6% of its global annual turnover and be ordered to implement corrective actions.
• A broader EU probe into Temu continues, examining potentially addictive design features, recommendation transparency, and data access for researchers.